Symbol Technologies, Inc.

Transcription

1 Symbol Technologies, Inc. Gillian Munson, VP Corporate Development March 6, 2006

2 Private Securities Litigation Reform Act of 1995 Safe Harbor Provision During the course of this presentation, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. Such statements are just estimates, and actual events or results may differ materially. We refer you to the documents that Symbol files from time to time with the SEC. These documents contain and identify forward factors, risks and uncertainties that could cause actual results to differ materially from those contained in our projections or forward-looking statements. This presentation includes certain non-gaap financial measures as defined under SEC rules. As required in this slide presentation, we have provided a reconciliation of those measures to the most directly comparable GAAP measures. Copies of our SEC filings are available upon request or by accessing our company website at

3 Agenda Symbol at a Glance Company Vision & Competitive Advantage Management Team Q4 05 Highlights/Revenue Breakdown Recent Product Launches/RFID Update 2006 Outlook/Top Priorities

4 Symbol at a Glance Advanced Data Capture Mobile Computing RFID Wireless Infrastructure Mobility Software Global Services Founded: 1975 Normalized Revenue & EPS: 2005 Revenue: $1.77B 2005 EPS: $0.22 Employees: ~5,200 Partners: 10,000+ Patents: 900+ Retail Wholesale Distribution Travel & Transportation Manufacturing Healthcare Government

5 Company Vision and Competitive Advantage Vision Symbol = Enterprise Mobility Connecting people and objects to information resources Our Competitive Advantage Unique end-to-end enterprise mobility solutions Technology and intellectual property leadership A global presence Long-term customer relationships and knowledge of vertical markets A channel-centric and alliancecentric sales model Customer service and support An experienced management team

6 Management Team Sal Iannuzzi President & CEO Todd Abbott SVP Worldwide Sales Tom Collins SVP WW Supply Chain Operations Mary McLeod SVP Global Human Resources & Corporate Affairs Boris Metlitsky SVP Global Products Group Arthur O Donnell SVP & GM Global Services Division & CQO Tim Yates SVP & Chief Financial Officer TBD SVP General Counsel & Secretary

7 Q4 05 Highlights Exceeded revenue & EPS expectations Q4 04 Q3 05 Q4 05 Margin expansion Revenue $450.5M $432.2M $438.9M Further penetration into new verticals T&T, Manufacturing, Field Mobility, Healthcare, Govt. New product introductions MC70: Symbol s first data-capture device with LAN, PAN & WAN capabilities PartnerSelect passes $1B mark in annual bookings Gross Profit Gross Margin % OPEX Operating Margin Net Income EPS $217.7M 48.3% $177.4M 8.9% $24.8M $0.10 $196.4M 45.4% $170.2M 6.0% $17.1M $0.07 $200.0M 45.6% $166.5M 7.6% $22.6M $0.09 * Excludes cash-basis accounting conversion in Q3 05; restructuring charges; and, other one-time items

8 Q4 05 Revenue Breakdown Revenue by Region Revenue by Product Services EMEA 28% AP 9% Wireless 7% Service 17% Americas 63% ADC 20% Mobile Computing 59% Other -3% Products

9 Recent Product Launches MC9090-S MC9090-K MC9097 MC9090-G CE 5.0 MC70 WAN/ PAN/LAN MC3000 BT, Audio & CE 5.0 XR400 Gen 2 AP5131 a/b/g W-IPS Wireless Intrusion Protection System SE950 and SE955 LS4278

10 RFID Update #1 and #2 in deployment of EPC readers and tags Complete EPC solution provider (tags, readers, platforms, services/support) Unmatched real application experience Broadest IP patent portfolio with ~50 patents of our own; Rapid Start Program; and RFID IP Consortium Recent Wins Pilots Pacific Cycle/Purdue Pharma Implemented RFID Solution for Manufacturing and Item Level Tagging McCarran Int l Airport/Asiana Airlines Deployed radio frequency identification (RFID) readers and tags for baggage tracking and monitoring systems Department of Homeland Security U.S. Visit Pilot Program Product Innovation XR400 Gen 2 Reader Multi-protocol Rugged Handheld Reader Gen 2 Early Adopter Program with Philips

11 2006 Financial Outlook Q1 Guidance: Revenue: approximately flat to slightly down vs. Q4 05 Gross Margin: slight improvement vs. Q4 05 Opex: $163 - $167 million EPS: $ $0.09, excludes $0.01 in stock-based compensation (including $ $0.02 per share associated with defense of prior mgt.) 2006 Targets: Drive revenue growth Opex by Q2 06: targeting $160 million Operating margin: double-digit by second-half 2006

12 2006 Top Priorities Target key vertical markets and geographic regions to enhance leadership position Expand into new markets with new products (i.e., MC70) Continue to improve and streamline operations Focus on technology innovation and build upon our strong foundation of intellectual property

13 THANK YOU For Your Time & Attention